Samsung goes offline with mobile phones

Samsung to stop selling smartphones online. In a move that might change the dynamics of India’s booming mobile phone market, Samsung, the largest android phone maker, has decided to take the offline retail route even as the rest of the world is moving online with various exclusive options.

The news was confirmed by a Senior Executive of Samsung Electronics while addressing a gathering of All India Mobile Retailers Association (AIMRA). While addressing a large gathering of retailers from AIMRA in the capital recently, a senior executive with Samsung Electronics said: “We have taken action against many rogue distributors, who were dumping their stocks online and beating down the price of our handsets. We are working hard to bring back price hygiene in the market. Our revenues from online sales have come down from 30% to single digit. We also have plans to stop billing WS Retail, the largest reseller on Flipkart.”

The executive said that Samsung has struck a deal with various e-tailers, wherein the company would give them exclusive rights to sell one or two models in return for the promise that they are going to maintain the price sanctity of Samsung handsets. Earlier this month, Samsung made Flipkart the exclusive launch partner for the Galaxy S5 Mini.

All India Mobile Retailers Association (AIMRA) has been formed that is supposed to work for the benefits of offline retailers and maintain price hygiene across segments.

“Samsung is trying to balance their growth in online sales versus the current offline sales. Though growth online is faster, offline still contributes much larger revenues. This move was necessary to ensure the bulk of their current business through distributors does not suffer for future growth online,” says Mr. Ashish Jhalani, Founder eTailing India.

TOI Report says “A few companies namely Flipkart, Snapdeal and Amazon etc are selling the goods through internet. In most of the cases, these companies are selling fast moving goods at a much lesser price than purchase price.”